1

City of Paris

Inaugural Sustainability Bond

November 2017

2

A leading world-class Capital

3

Seine banks transformed in pedestrian area

Paris has developed, into a center of culture, science, tourism, and finance, being recognized as one of the world's most influential global cities and the most visited city in the world (32 million visitors in 2015* and a record year in view for 2017 after a decrease in 2016 as a consequence of terrorist attacks )

Paris is at the heart of the Ile-de-France Region, one of the wealthiest regions in Europe and main economic hubs

Paris ranks in the world’s Top 50 cities for the quality of life (ahead of London or New-York)

As the capital, Paris is the political, administrative and business center of France

A leading European capital

* Source : Paris-Ile de France Tourist Board (CRT)

* Source Mercer 2017

4

Source : Insee, 2017

The gross domestic product (GDP) of Paris Region represents 30% of France’s GDP. Its GDP per capita is equivalent to 3 times the EU-28 average*

It is essentially an economy of services (around 85 % of the GDP)

Its economic development is facilitated by top notch infrastructures and a location at the heart of Europe

• A hub of Europe’s economy. Paris Region is the best connected City in Europe and offers the most favorable economic conditions for setting up a business : the largest airport hub in continental Europe (passengers and fret) with 2 major airports, 5 container terminals along 500 km of navigable waterways, 6 railway interchanges, 14 subway lines, 5 RER (regional express trains) lines, 7 tram lines, more than 1400 bus lines (in the Region).

• First European city for hosting headquarters of top 500 global companies

• Paris attracts approx 15% of Foreign Direct Investment (13% in 2013)

The unemployment rate in Paris is structurally lower than at national level (see the graph on the right hand side)

A dynamic city with economic strengths

Harbour at Javel, 15rd arrondissement

* See methodology by eurostat

Unemployement rate (%)

5

With 12 million inhabitants, the Ile-de-France Region where Paris is located represents almost 19 % of France’s total population (Paris : 2.3 million)

• Since 1999, Paris’ population has increased by over 100,000 people

This population is on average younger than in the rest of the national territory

• 600,000 students (including 335,000 within the city limits)

• 372 higher educational institutions (7 Universities, 2 IUT, 13 engineering schools, 37 business schools,…)

A highly qualified workforce

• 43.1 % of the working population are French executives in Paris (vs 15,6% at national level)

• 6.5 % of Europe's researchers (over 130,000 people) are located in the Paris region

• First European city in term of R&D spending

• A lot of new technology corporates

17,1%

68,3%

14,6%

22,2%

60,7%

17,1%

Under 18

18 to 64

Above 64

Paris France

Pyramid age structure

ESPCI – Higher School of Industrial Physics and Chemistry of the City of Paris

A dynamic population

Ile-de-France

Source : Insee, Distribution of the graduates of Higher education

according to the region of residence 2012

Source : Insee, 2013

6

Organization

& Responsibilities

7

Philharmonie concert hall

Paris is committed to the well being of its population, sustainable development, and supporting the French economy.

By law, the fields of responsibilities cover :

Social services & Healthcare

Urban planning

Primary and Secondary Schools

Culture

Environment

Economic development

Water Management, Waste collection and recycling

Paris’ fields of responsibilities

Elementary school Wattignies

Renovation of Les Halles district

8

Council of Paris

Paris’ specific status : a City and a Department, run by the same Council made up of 163 representatives who are elected every 6 years (last election : 2014)

• The Mayor and Deputy Mayors are elected by the Council of Paris

The French law on territorial reform (n°2015-991, 7th Aug 2015)

seeks to simplify local administration in order to make it more efficient

The city is the largest member of the Metropole de Paris which was set up in Jan 2016.

Paris institutions

Party

Elected

people

Majority (90 seats)

Socialist Group & Related 55

Communist-Front de gauche Group 13

Paris Ecologist Group 16

Center Left Radical and Independant Group 6

Opposition (73 seats)

Les Republicains Group 48

UDI-MoDem Group 15

Non registered 4

Parisian Progressist & Constructive Group 6

President of Council of Paris

Mme Anne Hidalgo

9

2016 : “Métropole du Grand Paris”

A gradual transfer of devolved responsibilities :

• 2016-2017 : setting up of the Metropolitan Project and the Master Development Plans (urban planning, energy distribution networks, pollution control, risk management,…)

• 2018 : transfer of responsibilities

A council of 209 elected members from the member’s cities (62 from Paris City)

Budget :

• Income = Cities’ taxes transferred + State grants

• Expenses = Devolved responsibilities + Compensation towards Cities

Map : distribution of inhabitants the metropolis (2016)

Métropole du Grand Paris : an inter-municipal body (EPCI) which is in charge of coordinating social housing policy and urban planning over 131 municipalities (over 7 Million inhabitants) of the greater Paris area

No Impact on Paris’ budget

10

A new status for Paris

A bill was approved on 28th Feb 2017, leading to a new status for Paris that will come into force gradually throughout 2018

This will lead to administrative simplification and improved efficiency of public actions (for instance the 4 central arrondissements will merge)

New breakdown of competencies between the City and the State (in particular in terms of parking, impound public service, fight against unworthy housing , funeral, police against fire …)

On 1st Jan 2019 the City (« Commune » under the French law) and the « Departement » will merge to become: a new local authority : « Ville de Paris »

11

French local and regional governments’ financial and administrative autonomy are constitutional principles

No explicit guarantee on local authorities’ debt from the State but close relationship :

The State guarantees the notion of general public interest :

3 types of control from the central administration on local authorities.

• controlling the legality of the city’s initiatives ( by the Prefect who is the representative of the State)

• controlling public accountancy operations and local authority budget (by the Ministry of Finance)

• Regular checking by a public financial Court (Chambres Régionales des Comptes reporting to Cour des Comptes)

The State guarantees financial backing by:

• determining tax bases (local authorities are free to determine most of the tax rates)

• guaranteeing that local authorities effectively receive tax revenues due

• giving local authorities monthly advances of local tax revenue

• compensating local authorities for devolved responsibilities

Paris’ relationship with the State

12

A strong financial structure

13

Cautious budget planning as a matter of principle leading to:

A structural and significant operating surplus EUR 581M in 2016

an ambitious Investment budget of EUR 1.63 bn in 2016 mainly self-financed

Golden rules imposed by the law :

• operating income funds operating expenditures

• debt amortization is paid by own resources

• debt funds only investment spendings

Paris Budget structure

Two distinct budgetary sections: Operating and Investments

14

A diversified operating income

Sources : forecast 2017

Administrative accounts 2012-2016

Operating incomes = EUR 8.3bn in 2017

2012 2013 2014 2015 2016 2017

Taxes 65% 65% 63% 68% 68% 71%

State Grants 17% 16% 15% 13% 10% 8%

Compensation for new responsibilities 4% 4% 4% 4% 4% 4%

Subsidies and contributions 3% 3% 3% 4% 3% 3%

Fees concessions and services provided 6% 6% 5% 6% 6% 6%

others 5% 5% 8% 5% 8% 8%

Financial Income 0,3% 0,2% 0,4% 0,3% 0,3% 0,3%

Exceptional Income 0,1% 0,4% 0,5% 0,2% 0,4% 0,2%

Operational Income 100% 100% 100% 100% 100% 100%

Overview of fiscal income (2016)

property tax 1 000 M€

residence tax 760 M€

tax on real estate transactions 1 274 M€

CVAE +MGP 1 449 M€

tax on household waste collection 467 M€

business property tax 317 M€

other 395 M€

total 5 663 M€

15

A strong base for incomes : a solid tax profile

A diversified operating income

• Low tax rates compared to the national average

(13,38% for residence Tax vs 24,38% at national level)

• Dynamic tax income due to the population profile, a solid economic activity base and a dynamic real estate market.

• High potential supplementary incomes linked to the use of the public domain (parking fees, concessions, etc.)

residence tax

property tax

16

Controlled Operating expenditures

Operating expenditures = EUR 7.8 bn in 2017

Source: forecast 2017

Administrative accounts (AA) 2012-2016

Equalisation impact on operating expenditures

AA 2014 AA 2015 AA 2016

Operating Expenditures (Op Exp) 7 527 7 653 7 683

% change 1,67% 0,39%

Op Exp excluding equalisations 6 246 6 299 6 294

% change excluding equalisations 0,85% -0,08%

2012 2013 2014 2015 2016 2017

Payrolls 30% 29% 29% 29% 29% 30%

General Expenditure 12% 11% 11% 11% 10% 10%

Social Aid 22% 21% 21% 21% 21% 21%

Subsidies 6% 7% 7% 7% 7% 7%

Contributions to public authorities 11% 11% 11% 10% 10% 10%

Contributions to local authorities 16% 16% 17% 18% 18% 18%

others 2,0% 2,0% 2,0% 2,2% 2,4% 2,6%

Financial charges 1,4% 1,5% 1,7% 1,6% 1,7% 1,7%

Exceptional charges 1,0% 1,0% 1,0% 0,7% 0,4% 0,5%

Operational Expenditures 100% 100% 100% 100% 100% 100%

17

Operating expenditures strictly controlled to face increasing transfers towards other local authorities

• Human resources costs and general charges under tight control helped by administrative reform

• Room of manoeuvre of many non compulsory expenditures

• Transfers towards other local authorities increased substantially in the last years

Controlled operating expenditures

General Expenditures (EUR M)

18

Investment budget

18

2014 – 2020

EUR 10 bn

for the future of Paris

Housing and social diversity

30%

5%

11%

9%

Smart city and attractiveness5%

8%

Sports

16% 4%

Environmentally-friendly city

Participatory

budgeting

Urbanism end redevlopment of public space

Municipal solidarity and

families

12%

Culture and

heritage

Public

transport

and soft

mobility

19

Investment budget

19

A high level of self financing enabling a high level of Investment :

₋ Investment = EUR 1.63 bn in 2016

₋ Limited financing requirements = 39,3% (average 2012-2016)

Consolidated budget (City + Department)

Administrative accounts 2011/2016

Social housing – street bleue

Yearly investment (€ M)

20

Borrowing Policy

21

Borrowing policy

Pragmatic Management…

Double target : minimize present and future financial burdens and maintain the City’s ability to raise funds whenever necessary

Systematic evaluation of the different funding opportunities: Credit Loans vs Bonds, Private Placements vs public bonds, Eur vs other currency funding…

» which enables low global funding costs

… which enables low global funding costs

Banks 5%

CDC,EIB,CEB 14%

Schuldschein 7%

Bonds : Public issues 33%

Bonds : Private

placements 41%

Bonds 74%

Paris’ main financing tool is our EMTN program with a €6 bn ceiling:

43 unmatured issues and some taps for an outstanding amount of €3.9Bn

22

Borrowing policy

Hedging

No currency risk

A limited interest rate risk

Initial debt Outstanding debt

Fixed rate 83%

Floating rate 17%

Fixed rate 89%

Floating rate 11%

EUR 91%

CHF 5%

NOK 2,6%

JPY 1%

EUR 100%

23

• A pragmatic and skilled management :

In house pricing tools Stress-tests are run periodically

• A conservative debt management :

Use of vanilla products (1) A limited interest risk exposure : no structured products (2) No currency risk (3) (1)+(2)+(3) 100% of the debt ranked « A1 » (lowest risk) according to Gissler risk score card Management of counterparty risk Diversified funding instruments A smooth debt amortization profile

Borrowing policy

To minimize present and future financial burdens

To maintain the City’s ability to raise funds whenever necessary

24

A linear debt amortization profile (loans and bonds) ...

Borrowing policy

…facilitating the mandatory debt service obligation

(art. L2321-2 from Local Authorities Code)

An average maturity of 10.6 years

average maturity

10.6 years

City of Paris debt profile as of 1st Nov 2017

25

Borrowing policy

Year Maturity (years) Average rate (%) Spread /OAT(bp)

2013 15 2,95 16

2014 12,4 1,91 13

2015 16,9 1,59 24

2016 17,3 1,2 27

2017 14,6 1,54 26,5

Funding rate since 2013 (*) Long term funding yield for Paris

The City benefited from the low rate environment

(*) as of 10/10/2017

26

Borrowing policy

Summary for outstanding debt as of 1st Nov 2017:

outstanding amount (loans and bonds): €5.28bn

average funding rate: 2.25%

average lifetime: 10.6 years

27

A diversified access to liquidity :

Access to liquidity

Commercial papers program EUR 800M

(S&P A-1+ / Fitch F1+)

Short term credit line EUR 200M

Multiannual credit line with EIB EUR 250M

Multiannual credit line with CEB EUR 175M

(consistent with S&P methodology )

28

High rating for a local authority in France

Financial rating

« well-diversified economy and superior infrastruture » « Clear budgetary strategy » « high financial transparency » « tight budget control and optimization of nontax revenue (AA / Stable / A-1+)

(AA / Stable / F1+)

« sound operating margin » « fairly low tax pressure » « revenue flexibility » « sound self-financing capacity »

Prudential Weights:

Solvency ll :0%

CRD lV: LCR 2A 20%

Last reviewed on October 20th, 2017

Last reviewed on October 13th , 2017

29

A Sustainability Bond for

City of Paris

Let’s take on the challenges of climate change and social issues

30

A new Framework, to support our environmental and social commitments towards Parisians and our investors partners, in line with the Green and Social Bond Principles 2017 : (cf. appendix for details) It defines the eligibility of the projects financed by the Bond:

For their environmental quality Clean transportation Energy Efficiency Renewable Energy Adaptation to climate change

For their social quality Access to essential services for underserved populations Quality of life improvement in unprivileged area Social Solidarity Economy Social housing

It defines the reporting features : Indicators and ESG criteria Proceeds allocation and external verification (DRFiP, Préfecture) External review

A new Framework for the future City of Paris issuances

A new Framework in line with several UNSDGs (cf. Second Party Opinion)

31

Rating and extra-financial credentials

Paris is at the top of Vigeo’s Local Authorities Ranking (among 29 European Local Authorities, end 2016)

Sustainable Development Performance:

Overall “Advanced*” ESG performance

Opinion on the next bond issue:

“Vigeo Eiris confirms that the bond intended to be issued by the City of Paris is a “Sustainability Bond” with positive contribution to sustainable development, aligned with the Green and Social Bond Principles. Vigeo Eiris reaches a reasonable level of assurance on the bond’s contribution to sustainability.”* *Definition of Vigeo Eiris’ scales of assessment :

Level of Assurance: Reasonable, Moderate, Weak.

Paris is labeled as “Positive Energy Territory” By the French Ministry of Ecology, Sustainable Development and Energy

* Vigeo Rating: Advanced, Strong, Limited, Weak

32

ESG criteria at the core of all projects: responsible procurement Presentation of City of Paris’ procurement function

A centralized procurement function since 2009

All expenditure chains gathered under the same direction since 2014, the Procurement and Finances Direction (« Direction des Finances et des Achats »)

Well trained and skilled procurement officers carrying out their missions in accordance with the Procurement deontology chater (« charte de déontologie Achats »).

A policy based on three sustainable developement’s pillars…

Economic: watch and supplier relations, SME’s access to public order, innovative procurement…

Social: integration clause/ criteria, integration markets, set- asides alongside Sheltered and Adapted Work or Integration Structures per Economic Activity sector (« Travail Protégé et Adapté ou des Structures d’Insertion par l’Activité Économique »)

292 active markets including a socio-professional insertion clause (average execution rate of 228%) – 369,003 working hours in 2016

Environmental: execution clause/ criteria – environmental health, protection of natural place and adhering in the circular economy’s loop

56.89 % of markets with an environmental clause/ criteria in 2016

33

ESG criteria at the core of all projects: responsible procurement Schema of Parisian responsible public order

Derived from the law « ESS » (n°2014-856) from 31st July 2014, completed by the energy transition and green growth law (n°2015-992) from 17th August 2015 Paris, first city to acquire a responsible public order Unanimous adoption on February 16th, 2016 in Paris Council session, consecrating an already well rooted responsible public order

AXIS 1: IMPULSE ECOLOGICAL TRANSITION FOR A SUSTAINABLE CITY

AXIS 2: BUILD A SOLIDAR CITY

AXIS 3: PARIS, EXEMPLAR CITY

Ambitious goals for 2020 A schema with an annex guide book and 48 « actions sheets » See link below to access the Parisian schema of responsible public order http://www.paris.fr/actualites/paris-adopte-un-schema-de-la-commande-publique-responsable

34

ESG criteria at the core of all projects: responsible procurement The results of City of Paris

Our results Between €1.1 and €1.6bn of procurement per year

80% of procurement (in amount) managed by Procurement and Finances Direction

SME contribution (in amount) : 41.4% in 2016

Average supplier payment period: 20 days

292 active markets including a socio-professional insertion clause (average execution rate of 228%) – 369,003 working hours in 2016

Purchasing from « SIAE » and « STPA »: €3Mln in 2016

56.89 % of markets with an environmental clause/ criteria in 2016

35

Focus on some components of Paris’ environmental policy

36

In October 2007 and December 2012, the Council of Paris unanimously approved the Paris’s Climate Action Plan.

Paris’ Climate Action Plan : Commitments

25% of Greenhouse Gas emissions reduction by 2020 compared to 2004

25% of Energy Consumption reduction by 2020 compared to 2004

25% of Renewable Energy or Recovery in the supply mix by 2020

Adapt Paris to climate change and resources scarcity

75% of Greenhouse Gas emissions reduction by 2050 compared to 2004

37

Paris’ Climate Action Plan : Commitments

PLANNING FOR ENERGY EFFICIENCY

10% of Paris in High Energy Performance, 50 000 m² with solar panels

LOW-ENERGY HOUSING, ACCESSIBLE TO EVERYONE

35 000 social housing units renovated, energy poverty reduction

THE SERVICE INDUSTRY IN PARIS, A NEW CHALLENGE

Partnership Commitment Charter for climate signed with 49 major companies: 750,000 tonnes of CO2 eq avoided per year

TOWARDS MOBILITY THAT IMPROVES THE CLIMATE AND AIR QUALITY

De-dieselization of Paris by 2024, -39% of Greenhouse Gas emissions

TOWARDS SUSTAINABLE CONSUMPTION WHICH GENERATES LESS WASTE

Food Waste reduction, City of Paris 1st public purchaser of Organic food in France

CITY OF PARIS ADAPTATION STRATEGY TO CLIMATE CHANGE

No Parisian at more than 7 minutes from a fresh space

38

Paris : an eco-city Actions engaged between 2004 and 2017

10 years of actions More than 200 actions engaged including

35 000 Renovated

Social Housing

-39% of GHG

Paris intra-muros

-17 000 t.CO2

in public catering

50 signatories

Paris Climate Action

7% of local renewable

and/or recovery energy production

- 50 000 t.CO2

of waste

Outstanding Administration

- 52 700 t.CO2

-9,2% GHG

2004-2014

+70 ha Green areas open to the

public

- 3636 GWh

2004-2014

39

Paris : an eco-city Achievements between 2004 and 2014

40

Inaugural Climate Bond issue of City of Paris

• Benefits from a Second Opinion from extra-financial agency Vigeo Eiris (positive opinion and best level of assurance « reasonable assurance ») :

Overall “advanced “ESG performance

Strong contribution of the eligible projects to Sustainable goals

Green Bond Framework in line with the Green Bond Principles

2016 Results :

• 147,9 M€ allocated so far out of 300 M€ nominal amount of the inaugural Climate Bond

• 27 889 t.CO2e/year avoided and 1 600t.CO2e/year sequestrated

• 570 kW peak power of photovoltaic installed (5 000 sqm of solar panels)

• 44 833 MWh saved in 2016, that is 88 904 MWh since 2015

• 2 200 planted trees; 3,4 hectares of green areas created

• 26 417 hours of professional integration validated out of 100 696 hours planned in the public markets

Paris’ Climate Bond 2015

41

1. Greenhouse Gas emissions reduction

Public transport : T3 Tramway - Extension of Chapelle-Asnières, work in progress, -10 100 tCO2eq/year at maturity

Public transport : Paris railway stations ring road (surface transport), phase of testing, current evaluation

Soft modes of transport : cycling lanes, under construction, -3 100 t.CO2eq/year

Electric vehicles: implementation of Belib’ charging points, under construction, -1 700 tCO2eq/year in 2020

2. Energy Consumption reduction

Sustainable building: Sustainable social housing (HQE buildings, thermal insulation) - 78 935 MWh/year and - 12 075 tCO2eq/year

financed since 2015

Public lighting: Energy performance market - 9 969 MWh and - 900 tCO2eq global savings

3. Renewable Energy or Recovery in the supply mix

Solar power : solar photovoltaic panels installed production of 513 MWh/year, equivalent to the same figures of electricity

consumption avoided and to - 14 t.CO2eq/year

4. Adapt Paris to climate change and resources scarcity

30 new hectares of Green areas, delivery of 11 000 sqm at ZAC Claude-Bernard – Preliminary studies of other projects launched

20 000 trees plantation (2 200 planted in 2015 and 2016) sequestration of 1 600 tCO2 eq in 2020

Paris’ Climate Bond 2015

42

Paris : a responsible city

43

Paris New Climate Plan

To achieve carbon neutrality in 2050 Towards a fairer, more resilient and inclusive city

44

Carbon footprint / Inner Paris emissions

Inner Paris Inner Paris

Inner Paris

Outer Paris Outer Paris

Outer Paris Outer Paris Outer Paris

Administration

Administration

<2% total

emissions

Inner Paris

emissions

Carbon

footprint

45

City of Paris commitments for climate Paris New Climate, Air and Energy Plan project

Compared to 2004

46

City of Paris commitments for climate Paris New Climate, Air and Energy Plan project

Compared to 2004

47

Evolution of Paris carbon footprint up to 2050

48

City of Paris commitments for climate Paris New Climate, Air and Energy Plan project

Climate Plan

Energy

Mobility Living environment

Mobilization

Speech

Nutrition Waste Finance

Compensation

Buildings

Planning

Governance

€

A global action

49

City of Paris commitments for climate Paris New Climate, Air and Energy Plan project

Paris 2050 Vision

€ Solar city, 100% renewable energy and actor

of the French renewable

20% of renewable energy produced locally

City with shared, active and sustainable

transportation

End of diesel and petrol vehicles

100% eco-renovated city with low carbon

and positive energy buildings

Accompany the renovation of 1 million housings

City with sustainable nutrition

Spread the « flexitarian » diet among all the

Parisians

City with zero non valued waste and circular

economy

City which prepares the financing of the energy

transition

Paris, place of the green finance

City which mobilizes the citizens and the actors of

the territory

Accompany the citizens towards low carbon lifestyles

City which ensures the quality of its living

environment

A socially fair transition

City which associates the actors of its territory with

the governance

City which displays and shares the realized progress

Enlarged follow-up Committee / digital citizen Council

50

Blue Climate : annual reporting adopted by the Council of Paris in December each year together with the preliminary budget Published on Paris’ website in January

Objective and performance contracts : document published together with Paris’ budget mentioning the monitoring of indicators related to Paris Climate Plan

Carbon assessment of the administration :

Each year for 80% of the staffs (excluding civil servants and freight transportation, assessed every 3 years)

Each year for the main projects: renovation of social housing and public buildings, fleet management, public lighting performance

Carbon assessment of the City :

Each year, for development in terms of people transportation and buildings

Every 5 years, in detail, for the other projects (2004, 2009, 2014)

International reports :

« Carbon Disclosure Project » (each year)

« Carbon Registry » (each year)

Mayors pact (every 2 years)

Nazca : United Nations’ framework convention on climate change

Paris New Climate, Air and Energy Plan : reporting

51

Focus on some components of Paris’ Social policy

52

Paris, a caring solidarity based City City of Paris social policy in favor of the elderly

The elderly in Paris: 465 000 persons over 60 years (i.e. 21% of the population) Increase of 13% between 2007 and 2014 25% for the 2040 projection

The 2017-2021 Senior Scheme in Paris

Communication Make the city more inclusive Prevent and accompany the fragilities

A parisian priority :

An effort from the Parisian local authority of 414 M€ (spending noticed in 2016, all expenditures and operators included)

The CASVP, Parisian public institution, leader in the sector

Typical profiles of the parisian seniors

Senior Scheme in Paris

53

Paris, a caring solidarity city The social policy of City of Paris for elderly people

The “CASVP”, Parisian public institution, first operator in elderly caring service

At home: Maintaining social life: leisure activities in 67 clubs, subsidized stays, etc. 42 “Émeraude” restaurants for the pensioners ( 695 000 meals / year ) Support at home for individuals with diminishing autonomy (fee-based service) Home nursing services

In residences: 7 850 accommodation places(including 2 100 in “EHPAD”) For this sector, a staff of 1 760 agents and a budget of €122 M in 2017 A high priority given to the lowest income people in the “EHPAD” residences of CASVP :

Low daily prices: €80,98/day (vs 84,96 €/day for other accredited “EHPAD”) 62% of residents in “EHPAD” residences of CASVP have their costs of living covered by social services “APL” convention (PLUS) for the latest “EHPAD” opened or ready to be

An active policy of CASVP to improve the accommodation offer in “EHPAD” residences :

in 2014, 3 EHPAD with a total of 320 places rebuilt or renovated in 2015, 2 new EHPAD delivered, with a total of 210 beds 1 EHPAD under construction (Belleville, reopening in 2019, 94 beds) 1 restructuring project is being studied (A. Groussier, works planned from 2019 to 2021, 164 beds)

54

Paris, a kind and solidarity based City The City’s policy in Paris

Social and urban inequalities concentrate mainly in the priority districts of the City’s Policy (QPV) The City’s policy ensures equality between territories and improves the living conditions of the inhabitants of the working class

areas The new city contract signed by the City and the State in 2015 defines 20 areas of priority in Paris, spread between 8

arrondissements : the 10th, the 11th, the 13th, the 14th, the 17th, the 18th, the 19th et the 20th

This new geography for priorities involves 150 400 Parisians, i.e. 7% of the population

The QPVs concentrate 25% of the investments between 2015 and 2020

Cartography of the City’s Policy areas since 2015

55

Paris, a caring solidarity city The housing policy of City of Paris

Context of the beginning of the mandate, a strained area : 221 917 social housing park 194 221 seeking family registered on 1st Jan 2015 Social housing rate: 19,1%

Quantified objectives:

20% of social housing in 2020, 25% in 2025 10 000 new accommodations

Qualitative objectives:

Targeting a low-income population Territorial rebalancing between over-equipped and under-equipped districts Reduce unhealthy habitat tackle energy precariousness

€3bn of cumulated investments between 2015 and 2020, including: €2,1bn of subsidies for investments €900 M dedicated to land acquisitions

Parisian social housing in 2015

Social Housing geographical distribution (2015)

as of 1st Jan 2015

56

Paris, a caring solidarity city Social housing typology

3 types of social housing: PLA-I (very social) PLUS (social) PLS (social and intermediate)

Source: Bleu Logement, December 2016

Social Housing Ceiling of ressources (childless couple)

Ceiling of rent (€/m²)

Source: Service-public.fr, september 2017

57

Paris, a caring solidarity city The housing policy of City of Paris

Focus on 2015 7 388 social housing units financed Implantations arbitrage in favor of districts in lack of social housing

Adaptation to local context

Bleu Logement report Annual monitoring tool

Social housing building delivered in 2015 located at 46 rue de la Pompe (16th)

Geographical distribution of financed social housing in 2015

Social Housing rate

Part within the 7 388 financed social housing in 2015

58

Tracking and monitoring the Paris actions

Bleu Logement report Bleu Climat report CSR report

Annual reports:

59

Examples of projects for

Paris’ Sustainability Bond

60

Improving life quality in unprivileged areas (example)

Cartography of 3 early childhood equipments

What you will finance:

3 childhood facilities in priority neighbourhoods (QPV: Quartier Prioritaire de la

Politique de la Ville) of the 20th district will be created

Programmes - 182 cradles, 4,805 m², including: Dénoyez Nursery : 50 cradles, 630 m² Lagny-Davout Nursery : 66 cradles, 1,350 m² Saint-Blaise multi-user facility: 66 + 33 cradles, 2,825 m² . . . . . . . . . . . . . . . . . . . . . . . . . .

2015-2020 Goals : 5 000 additional nursery places Territorial balance

. . . . . . . . . . . . . . . . . . . . . . . . . .

Priority Neighbourhoods (“QPV”):

. . . . . . . . . . . . . . . . . . . . . . . . . .

Investment: 17,6 M€

Plan of the future Davout-Lagny nursery

61

Favor the access of populations in difficulty to the essential services (example)

Projected ground floor plan

What you will finance :

Renovation of the EHPAD in Belleville intended for a population suffering notably from cognitive troubles (Alzheimer)

Capacity : 94 beds

. . . . . . . . . . . . . . . . . . . . . . . . . .

Delivery : Q4 2019

. . . . . . . . . . . . . . . . . . . . . . . . . .

Situation : 180 rue de Pelleport, Paris 20th

Priority district of the City’s Policy (QPV)

Total investment : 17,5 M€

Thermal solar panels, modernization of the boiler room, vegetated roof, etc.

Energetic consumption divided by 2 :

Target: 140 kWhEP/m² /annum vs 289 today

Certification BBC Effinergie Renovation

Certification NF Habitat HQE social institutions renovation

Front – projected

Front – currently Mass plan

62

Energy efficiency Decrease the energy consumption (example)

Renovated heating (rue de Poliveau, 5th arrondissement)

What you will finance:

Renovation of 300 thermal centers

Total parc : 2000 heatings

. . . . . . . . . . . . . . . . . . . . . . . . .

Project

Average life decreased from 16 ½ years to 12 ½ years

Rythm for modernization x3 vs. 2008-2014

. . . . . . . . . . . . . . . . . . . . . . . . . .

Deployment schedule : 2016-2019

. . . . . . . . . . . . . . . . . . . . . . . . . .

Energy gain : 20 GWh/year

. . . . . . . . . . . . . . . . . . . . . . . . . .

Investment : 58 M€

. . . . . . . . . . . . . . . . . . . . . . . . . .

Works opening the way to a remote control

63

Energy efficiency Decrease the energy consumption (example) + Improving life quality in unprivileged areas

What you will finance : Construction of Davout swimming pool

Equipment :

2 covered ponds of 25 m x 15 m and 25 m x 10 m

Immediate maximum attendance : 625 persons

. . . . . . . . . . . . . . . . . . . . . . . . . .

Delivery : end of 2019

. . . . . . . . . . . . . . . . . . . . . . . . . .

First HQE labelized swimming pool :

Target: 2 800 kWh/m² by pond

(i.e. 40% below the parisian average)

Target : water consumption of 85 L/swimmer

(i.e. divided by two vs the parisian average of 170L)

. . . . . . . . . . . . . . . . . . . . . . . . . .

Investment : 19 M€

. . . . . . . . . . . . . . . . . . . . . . . . . .

Adress : 134 boulevard Davout, Paris 20th

Priority district of the City’s Policy (QPV)

Davout Swimming Pool (20th arrondissement)

Project location

64

Clean transportation – Renewable energy Improvement of the quality of air (example)

Vehicle with GNV motorization

What you will finance :

Replacement of 544 diesel vehicles between 2015 and 2020 with GNV or electric motorization vehicles

Target: 544 existing diesel vehicles

188 bins

208 washers

148 vacuums

Deployment schedule : 2015-2020

Environmental gains:

Investment : 76,4 M€

GNV vehicles Eletric vehicles

-85% of NOx issuances -100% of NOx issuances

of noise pollution of noise pollution

100% compatible with BioGNV 100% compatible with green electricity

Eletric vehicles for cleaning

65

Clean transportation (example)

Map of the projected extension of the T3b tramway line

What you will finance :

Extension of the tramway T3b

Projet:

. . . . . . . . . . . . . . . . . . . . . . . . . .

Total investment : 218 M€

(of which 50 M€ already financed by the Climate Bond and 60 M€ by

the EIB)

Tramway T3b in the 18th arrondissement

Chapelle-Asnières segment Asnières-Dauphine segment

4,3 km of extension 3,0 km of extension

8 new stations 6 new stations

10 100 tCO2e/year saved 7 050 tCO2e/year saved

Delivery: end of 2018 Delivery: next term

66

Social and solidarity economy (example)

What you will finance : « Les Canaux » a place dedicated to social and solidarity economy

Principle :

Renovation of a 1 060 m² building

Remarkable example of a project conducted according to the circular economy principles

Future international showcase of the circular economy and the SSE

. . . . . . . . . . . . . . . . . . . . . . . . .

Deployment schedule : inauguration in November 2017

The site is occupied since july 2017 (Association Les Canaux, C40 Cities,

Yunus Centre, pépinière de Start-up.

. . . . . . . . . . . . . . . . . . . . . . . . .

Environmental contribution:

Works using exclusively reuse materials

. . . . . . . . . . . . . . . . . . . . . . . . .

Social contribution:

Works using massively SIAE

. . . . . . . . . . . . . . . . . . . . . . . . . .

Investment : 2,4 M€

House of the Canaux (19th)

67

Appendix

68

City of Paris’ Sustainability Bond : Environmental benefits

Project Categories Definition Sub-categories Objectives Sustainability

Benefits

1. Clean

Transportation

Projects aiming at developing low-carbon energy

transport (bicycle, electric vehicles) and public

transport

Public transport : High Quality Transit Line, tramway line

extension, refurbishment of public spaces

Alternative transport: cycling Plan

Electric vehicles: support to the development of electric

cars for residents and professionals, network of charging

stations for electric and GNV vehicles

Reduction of GHG

emissions, due to low-

carbon transport

Climate change mitigation

---

GHG emissions reduction

2. Energy efficiency

Projects aiming at reducing the energy consumption

of buildings and public lighting, while maintaining

equivalent level of service (existing situation or vs.

standard), with performance goals and energy

poverty focus

Buildings: construction of energy efficient, thermal insulation

for buildings (schools, social housing, nursing homes, etc.)

Public lighting and signals: replacement of energy

consuming appliances

Renovation of heating systems

Energy savings

Climate change mitigation

---

Energy savings

3. Renewable energy Projects aiming at developing local renewable energy

production and/or energy recovery

Renewable energy power plants (solar panels)

Geothermal energy

Energy recovery (from wastewater networks, data centres)

Heating network

Increase of renewable

energy production

Reduction of GHG

emission, due to low-

carbon energy use and/or

energy recovery

Climate change mitigation

---

GHG emissions reduction

and energy recovery

4. Adaptation to

climate change

Projects aiming at reducing the impacts of climate

change, especially the heat island effect, through the

expansion of green area surfaces in Paris

New green areas: areas opened to the public, green roofs,

facades and walls

Tree planting programmes

Increase of green areas

and biodiversity in Paris

Adaptation to climate

change

---

GHG emissions

segregation

69

City of Paris’ Sustainability bond: Social benefits

Social Eligible Projects Categories:

70

City of Paris’ Sustainability bond: ESG performance indicators

ESG performance indicators:

71

Last trades for 2016-2017

Trade date Type Amount (EUR M ) maturity (Years) re-offer (%) Spread /OAT (bp)

30/03/2016 Public Bond 300 16 1,313 38

08/04/2016 PP 35 22 1,512 34

14/04/2016 PP 26 13 1,03 31

21/06/2016 Schuldschein 50 27 1,499 29,5

22/06/2016 PP 50 14 0,951 29

14/10/2016 Schuldschein 40 25 1,278 26,5

14/10/2016 PP 50 20 1,16 25

09/11/2016 PP 50 20 1,3 25

25/11/2016 Loan 80 25 amort 0,57 -15

TOTAL 2016 681 17,3 1,2 27,4

24/01/2017 Public Bond 300 16 1,705 26

24/08/2017 PP 26 20 1,579 20

25/09/2017 Loan 75 13 amort 0,75 31

TOTAL 2017 401 14,6 1,542 26,5

(*) as of date 10/10/2017

Last trades 2016+2017*

72

Contacts and Documentation

- Budget documents :https://www.paris.fr/investisseurs - Sustainability & Climate Bonds: https://www.paris.fr/investisseurs#strategie-de-financement-verte-et-responsable_2

Internet site : http://www.paris.fr/

Contacts :

Hervé AMBLARD +33 1 42 76 35 13

herve.amblard@paris.fr Head of Funding

Teddy TISBA +33 1 42 76 80 28

teddy.tisba.@paris.fr Deputy Head of Funding

Yann FRANÇOISE +33 1 71 28 50 62

yann.francoise@paris.fr Head of Climate-Energies

and Circular Economy

Frédéric LABURTHE +33 1 44 67 15 11

frederic.laburthe@paris.fr Assistant Deputy Director for

elderly

73

Disclaimer

This document is not to be used or considered as an offer to sell or solicitation of an offer to buy any securities, and should not be considered as a recommendation by the City of Paris (“Mairie de Paris") that any recipient of this document should subscribe for or purchase any securities.

Some information or opinions contained in this document (i) have been compiled or arrived at by the City of Paris from sources believed to be reliable, but the City of Paris does not make any representation as to their accuracy or completeness and (ii) are given at the date mentioned in the presentation and are subject to change without notice.

This document is not to be relied upon as such or used in substitution for the exercise of any independent judgment and each recipient must make his or her own investigation as to the opportunity of any investment in the City of Paris.